Elon Musk's X’s ‘ad boycott’ claims rejected by US court in major legal blow

A US judge has dismissed a lawsuit filed by Elon Musk’s social media company X Corp, which accused major advertisers of orchestrating an illegal boycott that cost the platform billions in revenue.

The case, brought in 2024, alleged that companies including Unilever, Mars, and Ørsted, along with the World Federation of Advertisers, conspired to withhold advertising in violation of US antitrust laws.

However, US District Judge Jane Boyle ruled that X failed to demonstrate that the companies had engaged in coordinated, anti-competitive behavior.

In her decision, she said the platform did not provide sufficient evidence that the advertisers acted together rather than making independent business decisions.

The ruling also addressed the role of the Global Alliance for Responsible Media (GARM), an initiative aimed at preventing ads from appearing alongside harmful content.

The court found that GARM does not control advertising purchases or direct companies on where to spend, weakening X’s claims of collusion.

The lawsuit came after a sharp drop in advertising revenue following Musk’s 2022 acquisition of Twitter, now rebranded as X.

Many brands scaled back spending amid concerns over content moderation changes.

The case was dismissed with prejudice, meaning X cannot refile it, marking a significant legal setback for the company as it continues efforts to rebuild advertiser trust.